Cavco Industries, Inc. (Nasdaq: CVCO) announced financial results for its fiscal second quarter ended September 26, 2026. The company reported net revenue of $656.4 million, an increase of $100 million or 17.9% compared to the same period in the prior year. This growth was driven by higher home sales volume and an increase in the average selling price per home.
Home sales volume rose by 15.3% to 5,972 homes, while factory-built housing capacity utilization remained consistent year-over-year at approximately 75%. The factory-built housing segment generated $633.8 million in net revenue, up 18.4% from $535.1 million in the prior year. Financial services revenue increased by 5.8% to $22.6 million.
Gross profit for the quarter totaled $147.6 million, representing a gross profit margin of 22.5%. This was a decrease of 1.7 percentage points compared to the prior year. The factory-built housing segment saw a gross profit margin of 21.1%, down from 22.9%, while the financial services segment improved to 60.2% from 55.6%.
Income before income taxes was $73 million, an increase of $6 million or 9.1% compared to $67 million in the prior year. Net income was $55.4 million, resulting in diluted net income per share of $7.17, up 9% from $6.55 in the prior year.
At the end of the quarter, the company reported a backlog of $348 million, representing 8 to 10 weeks of production, which is an increase of $50 million from the previous quarter. Stock repurchases totaled approximately $30 million during the quarter, with $158 million remaining available for repurchases under previously announced board authorizations.
President and Chief Executive Officer Bill Boor noted that this was the second consecutive quarter of record revenue and unit volume. He highlighted that selling price increases exceeded cost pressures during the quarter, resulting in a small sequential gross margin improvement. Boor also mentioned that the company began seeing data center workforce housing orders and shipments during the quarter.
